Top advisors and industry leaders shaping the UK's semiconductor strategy joined forces with Taiwanese semiconductor veterans at the Semi Impact Forum to share their visions for transforming the UK into a chip-enabled science and technology powerhouse.
The UK's semiconductor strategy, published in March 2023, aims to leverage UK's strengths in R&D, design, IP, and compound semiconductors to become a leading presence over the next two decades. The government plans to inject £200 million into the sector by 2025, with a commitment to invest up to £1 billion (US$ 1.27 billion) over the next decade, guided by an advisory panel comprising industry, academia, and government voices.
Distinct from the US approach to onshoring large-scale silicon manufacturing, the UK focuses on expanding its compound semiconductor ecosystem, providing easier access to chip design tools and prototyping facilities, and supporting semiconductor startups through new incubators. At the forum on June 14, part of the London Tech Week fringe event, key UK figures discussed their progress and plans for semiconductor initiatives.
Semiconductor efforts in progress
Jalal Bagherli, chairman of the UK Semiconductor Strategy Advisor Panel, highlighted the UK's strong innovation in the semiconductor industry.
"The UK has a robust history of successful startups and innovation in IP, with companies such as Arm and Imagination. Now, we're seeing growth in non-silicon semiconductors, including Silicon Carbide (SiC), Gallium Nitride (GaN), thin film technologies, and graphene," he noted.
Bagherli pointed to areas needing further development, including compound semiconductors, open foundries, and commercialization of university research. Regarding which aspect of the strategy requires further development, Bagherli suggests compound semiconductors, open foundries, improving accessibility of foundries for startups, and the commercialization of R&D university research.
The London School of Economics (LSE) recently released the "UK Semiconductor Handbook," detailing the current state of the nation's semiconductor industry. The report predicts that in the next decade; to reduce power consumption and carbon emissions in data centers, chip manufacturing will adopt new materials beyond silicon which the UK would then serve to benefit from its early development of compound semiconductor technology.
Chips made from SiC and GaN are crucial for high-performance applications such as quantum computing, electric vehicles, 5G and 6G networks, IoT, and immersive technologies like AR and VR. The global compound semiconductor market is expected to grow to nearly £280 billion (US$360 billion) by 2030.
Prime Minister Rishi Sunak's recent announcement of an early general election on July 4 has raised questions about potential impacts on semiconductor policy continuity.
Russ Shaw, founder of Global Tech Advocates and founding partner of London Tech Week, believes the current prime minister's ambition for the UK to become a science and technology powerhouse is a sentiment likely to be carried over by any future leaders regardless of the election result. "As the third largest tech ecosystem globally, the UK must prioritize semiconductors to realize its technological aspirations," he urges.
Bagherli also hopes the next elected leader will maintain the continuity of the UK's semiconductor efforts, echoing the need for sustained investment, likening the UK's efforts to Taiwan's long-term approach.
Collaboration with Taiwan
Regarding collaboration opportunities, Bagherli suggested enhancing accessibility for smaller UK companies entering the semiconductor ecosystem. He proposed the establishment of a local presence by Taiwanese manufacturing representatives to facilitate initial engagements and reduce barriers for startups.
Moreover, Bagherli believes the UK and Taiwan could benefit more from working together on advanced packaging and joint R&D initiatives. He highlighted the growing importance of heterogeneous packaging in integrating various chip technologies, emphasizing its relevance as the industry moves beyond bleeding-edge processing toward more systemic approaches.
Bagherli also praised Taiwan's world-leading status in advance CMOS, suggesting that could be another sector where the two sides could collaborate more. He also mentions while there often are many issues regarding intellectual properties with other countries, Taiwan has remained a consistently reliable, and law-abiding partner.
"I can assure you, in my 30-some years of the semiconductor industry, I've had never any problem with Taiwan," says the chairman of the advisory panel.
